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USAID – PUCSL launch the Electricity Dispatch Database & Dashboard

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The United States Agency for International Development (USAID), in collaboration with the Public Utilities Commission of Sri Lanka (PUCSL), launched the Electricity Dispatch Database and Dashboard, an online platform to enhance transparency in the management of Sri Lanka’s power distribution through a visualization platform. 

Developed and funded by USAID’s Sri Lanka Energy Program, the Dispatch Data Dashboard is a comprehensive tool that allows stakeholders to access and visualize data relevant to electricity generation, forecasts, costs, reservoir details, and emissions, providing insights into the energy sector’s intricate operational dynamics. The initiative will help foster transparency and accountability within Sri Lanka’s energy.  

The Dispatch Data Dashboard features a user-friendly interface, making it accessible to a broad audience. Users will be able to query dispatch data, gaining valuable insights into the dispatch process and the rationale behind cost optimization. This transparency not only promotes accountability but also encourages collaboration among industry players, paving the way for improvements in the dispatch process.  

The Dispatch Data Dashboard will be used for a wide array of stakeholders, including sector analysts, researchers, current independent power producers, future renewable energy developers, and environmental organizations. The online dashboard is available at https://gendata.pucsl.gov.lk/home. The USAID Sri Lanka Energy Program is proud to be at the forefront of this initiative, driving positive change for the benefit of all stakeholders. 

Members of the public will now have the ability to comprehend the dispatch process, enabling them to raise inquiries and contribute to discussions about the energy sector’s future. This marks a significant step forward in democratizing information and fostering a sense of ownership among the public. 

Chris Powers, Director of the Economic Growth Office of USAID stated that, “This Dashboard will help drive financial sustainability of the power sector, while contributing to the viability of the nation by enhancing energy security and ensuring the lowest possible cost of electricity. By fostering transparency and empowering stakeholders, this tool is an instrumental resource in our collective fight against climate change. In understanding and optimizing our energy management processes, we pave the way for a more sustainable future, driving efficiencies that contribute to reducing the cost of power generation while reducing our carbon footprint. In the face of climate challenges, knowledge is power, and the Dashboard empowers us all to make informed decisions that positively impact our environment.” 

“The Dispatch Data Dashboard represents a major leap towards a more transparent and accountable energy sector in Sri Lanka,” said Professor Manjula Fernando, Chairman  at PUCSL. “By providing a platform for stakeholders to engage with dispatch data, we aim to drive positive change, encourage innovation, and ultimately contribute to a more sustainable and cost-effective energy future for Sri Lanka.” 

The Dispatch Data Dashboard is anticipated to play a crucial role in driving down generation costs for the Ceylon Electricity Board (CEB). By facilitating a better understanding of the dispatch process and encouraging stakeholder collaboration, the initiative holds the potential to bring about operational efficiencies that will benefit both the industry and end consumers backed by the National Energy Benchmarking Portal – which was recently launched by the USAID Sri Lanka Energy Program and the Sri Lanka Sustainable Energy Authority to address the demand/consumption side of the energy.  

The USAID Sri Lanka Energy Program supports transforming Sri Lanka’s power sector into a market-based, secure, reliable, and sustainable system by mobilizing investment to deploy advanced technologies, increase flexibility, and enhance competitiveness.

(US embassy in Colombo)

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HNB finance depositors in jeopardy due to ‘PrimeMax’ 0.5% scheme

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A controversial real estate financing model, ‘PrimeMax’, introduced by Prime Lands for apartment buyers, is allegedly putting both buyers and HNB Finance depositors at significant financial risk.

This is because Prime Lands, which holds a 38% stake in HNB Finance, is leveraging its shareholder power to aggressively direct public funds into high-risk, speculative real estate loans.

Experts warn that this move not only violates CBSL’s risk diversification regulations but also exposes HNB Finance to significant liquidity risks.

Traditionally, HNB Finance operates in the microfinance sector, which relies on fast cash flow and frequent repayments.

However, this real estate loan model contradicts the principles of microfinance by front-loading funds into high-value condominium projects and locking capital into long-term, high-value loans with slow repayment cycles. This shift undermines the company’s liquidity, putting both the financial stability of HNB Finance and the security of its depositors’ funds at significant risk.

How the ‘PrimeMax’ 0.5% payment scheme works:

  • 10% Down Payment: Buyers pay only 10% of the total property value upfront.
  • 47.5% Bank Loan: HNB Finance funds nearly half of the property value through a loan.
  • Interest-Only Payments for 3 Years: Buyers pay just 0.5% per month, primarily covering interest with minimal reduction in the principal.
  • Additional 15% Paid as Interest: Over the 3-year period, buyers will have paid an additional 15% of the sale value as interest.
  • Outstanding Balance After 3 Years: After the 3-year period, approximately 75% of the total property value remains unpaid. This balance consists of the remaining loan amount owed to HNB Finance, along with the outstanding balance owed to Prime Lands.

Financial trap for apartment buyers

Prime Lands markets this scheme as a flexible investment opportunity, but economic experts say it is actually a debt trap that locks buyers into long-term loans.

Crippling debt even after 3 years : With more than 75% of the property price left unpaid, buyers will be burdened with a massive financial liability. This overwhelming debt will make it nearly impossible to secure refinancing or sell the property at a reasonable price.Even after 03 years, buyers will still owe roughly 75% of the property’s price, which makes refinancing or reselling at fair value very difficult.

The buyback & resale scam : Meanwhile, the promised opportunity to resell at a higher value is highly speculative and unreliable.  Project delays, unfavorable market conditions, and low demand can make reselling impossible, leaving buyers stuck in a property they can’t sell.

With these limited options, they may be forced into the buyback scheme-often at a price far below market value, resulting in significant financial losses rather than the anticipated profits.

Threats to HNB finance depositors

This flawed financing structure does not only impact buyers – it directly threatens the financial stability of HNB Finance customers and depositors:

  • Liquidity Challenges: With loan repayments delayed, HNB Finance may struggle to maintain its financial commitments, putting depositors’ funds at risk.
  • Risk of Defaults: If apartment buyers default due to high outstanding balances, HNB Finance could face serious financial losses, ultimately jeopardizing its depositors’ security.
  • Regulatory Violations: The Central Bank of Sri Lanka enforces strict lending policies for finance companies. This scheme raises concerns about compliance, as it prioritizes aggressive sales over responsible lending practices.The shift from microfinance to large-scale property lending could also push HNB Finance beyond regulatory limits for exposure to a single sector.

CBSL must intervene to protect public funds and depositors

The Central Bank of Sri Lanka (CBSL) enforces strict Risk Diversification Regulations for licensed finance companies to prevent excessive exposure to any single sector, ensuring depositor safety and financial stability.

However, HNB Finance PLC is dangerously violating this principle by diverting a significant portion of its funds into speculative real estate loans under the Prime Lands 0.5% scheme.

Unlike commercial banks, finance companies rely heavily on public deposits, making it crucial for them to maintain liquidity and prudent lending practices.

By over-lending to real estate, HNB Finance not only concentrates risk in a volatile sector but also compromises depositor funds, increasing the chances of liquidity shortfalls and defaults.

If this reckless lending continues, HNB Finance risks breaching CBSL’s sectoral exposure limits, leading to severe financial instability.

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HNB finance depositors in jeopardy due to ‘PrimeMax’ 0.5% scheme

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A controversial real estate financing model, ‘PrimeMax’, introduced by Prime Lands for apartment buyers, is allegedly putting both buyers and HNB Finance depositors at significant financial risk.

This is because Prime Lands, which holds a 38% stake in HNB Finance, is leveraging its shareholder power to aggressively direct public funds into high-risk, speculative real estate loans.

Experts warn that this move not only violates CBSL’s risk diversification regulations but also exposes HNB Finance to significant liquidity risks.

Traditionally, HNB Finance operates in the microfinance sector, which relies on fast cash flow and frequent repayments.

However, this real estate loan model contradicts the principles of microfinance by front-loading funds into high-value condominium projects and locking capital into long-term, high-value loans with slow repayment cycles. This shift undermines the company’s liquidity, putting both the financial stability of HNB Finance and the security of its depositors’ funds at significant risk.

  • 10% Down Payment: Buyers pay only 10% of the total property value upfront.
  • 47.5% Bank Loan: HNB Finance funds nearly half of the property value through a loan.
  • Interest-Only Payments for 3 Years: Buyers pay just 0.5% per month, primarily covering interest with minimal reduction in the principal.
  • Additional 15% Paid as Interest: Over the 3-year period, buyers will have paid an additional 15% of the sale value as interest.
  • Outstanding Balance After 3 Years: After the 3-year period, approximately 75% of the total property value remains unpaid. This balance consists of the remaining loan amount owed to HNB Finance, along with the outstanding balance owed to Prime Lands.

Prime Lands markets this scheme as a flexible investment opportunity, but economic experts say it is actually a debt trap that locks buyers into long-term loans.

Crippling debt even after 3 years : With more than 75% of the property price left unpaid, buyers will be burdened with a massive financial liability. This overwhelming debt will make it nearly impossible to secure refinancing or sell the property at a reasonable price.Even after 03 years, buyers will still owe roughly 75% of the property’s price, which makes refinancing or reselling at fair value very difficult.

The buyback & resale scam : Meanwhile, the promised opportunity to resell at a higher value is highly speculative and unreliable.  Project delays, unfavorable market conditions, and low demand can make reselling impossible, leaving buyers stuck in a property they can’t sell.

With these limited options, they may be forced into the buyback scheme-often at a price far below market value, resulting in significant financial losses rather than the anticipated profits.

This flawed financing structure does not only impact buyers – it directly threatens the financial stability of HNB Finance customers and depositors:

  • Liquidity Challenges: With loan repayments delayed, HNB Finance may struggle to maintain its financial commitments, putting depositors’ funds at risk.
  • Risk of Defaults: If apartment buyers default due to high outstanding balances, HNB Finance could face serious financial losses, ultimately jeopardizing its depositors’ security.
  • Regulatory Violations: The Central Bank of Sri Lanka enforces strict lending policies for finance companies. This scheme raises concerns about compliance, as it prioritizes aggressive sales over responsible lending practices.The shift from microfinance to large-scale property lending could also push HNB Finance beyond regulatory limits for exposure to a single sector.

The Central Bank of Sri Lanka (CBSL) enforces strict Risk Diversification Regulations for licensed finance companies to prevent excessive exposure to any single sector, ensuring depositor safety and financial stability.

However, HNB Finance PLC is dangerously violating this principle by diverting a significant portion of its funds into speculative real estate loans under the Prime Lands 0.5% scheme.

Unlike commercial banks, finance companies rely heavily on public deposits, making it crucial for them to maintain liquidity and prudent lending practices.

By over-lending to real estate, HNB Finance not only concentrates risk in a volatile sector but also compromises depositor funds, increasing the chances of liquidity shortfalls and defaults.

If this reckless lending continues, HNB Finance risks breaching CBSL’s sectoral exposure limits, leading to severe financial instability.

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High Posts committee approves appointments of 4 ministry secretaries

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The Committee on High Posts, which met recently in the Parliament under the patronage of the Prime Minister – Dr. Harini Amarasuriya, has given its approval for the appointment of 04 secretaries for ministries.

Accordingly, the following appointments have been approved :

Prof. K. T. M. Udayanga Hemapala – Secretary to the Ministry of Energy 
K.M.G.S.N. Kaluwewa – Secretary to the Ministry of Education, Higher Education, and Vocational Education
S.M. Piyatissa – Secretary to the Ministry of Labor
K.D.R. Olga – Secretary to the Ministry of Women and Child Affairs

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